CREDIT CARD issuer Zed Financial PH, Inc. has raised $16.5 million in funding from a Series A round led by Silicon Valley-based venture capital firm Accel.
“This investment marks a significant milestone for the Philippine startup ecosystem, bringing one of Silicon Valley’s most prestigious investors to the country. Accel joins existing investors Valar Ventures and notable angels including Immad Akhund and Dalton Caldwell, bringing Zed’s total funding to $22.5 million,” Zed said in a statement.
It said the investment backs its goal to use artificial intelligence (AI) for underwriting based on current income, transaction data, and other data sources outside of traditional credit scoring models to help boost young Filipinos’ access to credit.
“Zed is solving a problem that millions of young Filipino professionals face: a banking system stuck in the past. Despite having college degrees, stable incomes and professional careers, many young people are rejected by traditional banks due to credit factors embedded in their credit score that don’t actually reflect their risk — like the age of their existing credit accounts. This leaves a huge segment of potentially prime customers unserved.”
“In leading Zed’s Series A, we’re backing a team with the skill and ambition to build AI-powered finance that’s transparent, personal, and accessible for customers overlooked by today’s banks worldwide,” said Nafis Jamal, partner at Accel. “Young adults navigating the banking system for the first time often find its doors mostly shut. Opaque fees, clunky apps, and impersonal interactions make it clear these institutions were built for a different era (and a different customer).”
Zed last year rolled out its credit card on an invite-only basis. It said it has seen “massive demand” for the card, with its waitlist growing to nearly 200,000 sign-ups.
“Since the beginning of the year, the customer base has grown 10x and transaction volume has surged ~500% — all while the vast majority of the waitlist has yet to be invited,” it said. “With this new funding, Zed is accelerating its rollout to the waitlist and scaling its team.”
“Banks in Southeast Asia are running on infrastructure designed for two decades ago,” said Steve Abraham, Zed co-founder. “This round accelerates our plan to rebuild that stack. The world is changing with large language models maturing, and a new generation of experiences across industries will be born. We envision a future where we can deliver a level of personal, proactive banking that used to be reserved for the few, and make it accessible to everyone.” — BVR
